UMC chairman fined over Chinese foundry disclosure, says report

LONDON  Taiwan's Financial Supervisory Commission has fined Robert Tsao, chairman of foundry chipmaker United Microelectronics Corp., for failing to disclose in a timely way its relations with Chinese foundry He Jian Technology, according to an Associated Press report on BusinessWeek Online.

Tsao has been fined approximately $95,000, for failing to disclose UMC's links to He Jian, the report said.

In Taiwan, which is worried about the loss of its core foundry business to political rival China, an investment in Chinese foundries that use 200-mm diameter wafers requires a lengthy vetting process, which UMC did not enter into.

UMC has denied a formal relationship with He Jian but has said it referred customers to the Chinese foundry and provided technical assistance.

The government took action February launching a series of raids on UMC offices to gather evidence of alleged investments and other assistance UMC may have given to He Jian. The government then charged UMC with breach of trust, accusing it of flouting the law by playing a major role in setting up He Jian.